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Split transfer case.
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Previously:
https://www.homemadetools.net/forum/...651#post193536
https://www.homemadetools.net/forum/...491#post173775
https://www.homemadetools.net/forum/...246#post176869
https://www.homemadetools.net/forum/...289#post172935
Well, there's your problem right there, that chain not getting any lubrication.
It do look bone dry
My years of experience with this type of failure usually is traced back to a bad U-joint in the drive shaft on either the front or rear drive shaft.
If the rear driveshaft is at fault it will vibrate the transfer case and break it off at the transmission / transfer case mounting flange.
If the front drive shaft u-joints or the slip splines on the front shaft are binding or stuck it will cause a horizontal force on the transfer case and snap it into.
Seeing where this transfer case is broken at I would suspect the front drive shaft.